santander IO - suitable repayment vehicle

michaels

I am looking at getting a Santander IO but was wondering what they would consider as a suitable repayment vehicle for IO - specifically does equity in BTL property or pension lump sum count?

How about plans to downsize (but how would you prove/disprove this?)

Thanks

(Oh and I did try calling their mortgage centre but they seemed pretty unclear)

glosoli

Don't quote me on this but I understand their criteria is as follows...

Downsizing - max LTV 50%. You need to be clear about the area/type of property you would downsize to.

Pension - either 25% of the pension fund value, or 100% of the final salary pension lump sum.

Equity in BTL - this is fine as long as the title deeds for the residential have the same names as the title deeds on the BTL

_Andy_

http://www.abbeyforintermediaries.com/library/lib_44.pdf

Let_Us_See

Santander's IO T & Cs
Where any part of the mortgage is on an interest-only basis we will allow either sale of the mortgaged property or an acceptable investment vehicle.

Where sale of property is used the minimum equity buffer is £100,000 and the maximum term is 25 years.


Where any part of the mortgage is on an interest-only basis the maximum LTV for the overall lending is 75%.


Any lending over 50% and up to 75% LTV must be on a capital and interest basis.

For all interest-only applications, we will assess affordability on a capital and interest repayment basis and assume a repayment period of 25 years minimum. If the actual mortgage term selected is longer than 25 years with a funded investment vehicle, the longer term will be used.

Acceptable interest-only funded investment vehicles

The investment vehicle must be managed by an FSA regulated firm and have been running for a minimum of 12 months and cover the interest-only amount.

Acceptable investment vehicles are:


Endowment Policy or Mortgage Linked ISA.


Equity based investments (shares, unit trusts, Open Ended Investment Companies (OEIC’s)) or Investment Bond.

The lender will request evidence of suitability of any repayment vehicle.

amnblog

michaels wrote: »

(Oh and I did try calling their mortgage centre but they seemed pretty unclear)

No surprise there then

michaels

Thanks everyone

What amuses me is that a tax efficent savings strategy like using a pension lump sum is not acceptable and nor is a solid asset like equity in another property.

However some wooly promise that in 20 years time on retirement I am definitely planning to sell up and live in a bungalow by the seaside is perfectly acceptable.....

amnblog

All the lenders have run for the hills on interest only with the FSA/FCA looking over their shoulder.

michaels

So having decided to go for this mortgage it looks like Santander have pulled it. I say looks like as it is not on the website any more but when I called the call centre they claimed it was still available. Anyone know:

5 yr fix 2.49% 60% ltv 1495 fees?

Morgage_Confused

Thats one hell of a good deal and io aswell.

michaels

Morgage_Confused wrote: »

Thats one hell of a good deal and io aswell.

Well it is only 50% ltv for IO. And it does appear to be still available, masquerading as a 2 year fix on the website but when you click through the expiry date is 2018.

It is a good deal as you can get an additional 1% of payments back up to £120pa if you are a 123 account holder so another 600 off over the 5 years.